Quarterly Industry Update As of December 31, 2015 Industry: Oncology Pharmaceutical

Industry Summary

Cogent Valuation identified Oncology Pharmaceutical publicly traded companies, IPOs, and recent M&A transactions within the Oncology , which provides a basis for market and transaction pricing that can be used by your firm in estimating market sentiment and its impact on your firm's value. Over the last year since December 31, 2014, the median 52-week share price return of the Oncology Pharmaceutical industry was 5.0%. Between December 31, 2013 and December 31, 2015, the median EV/EBITDA multiple decreased from 15.6 to 13.2. However, the median price-to-earnings multiple increased from 21.5 to 23.0 over the same period.

Comparable Public Company Key Statistics

Median 52-Week Return5.0% Median EV/Revenue Multiple5.0x Median Price/Earnings Multiple 23.0x Median 3-Year CAGR Return26.7% Median EV/EBITDA Multiple13.2x Median EV/Gross CF Multiple 13.2x

Comparable Public Company Market Price Returns As of December 31, 2015

YTD 3 Month 1 Year 2 Year 3 Year 5 Year 2015 2014 2013 2012 2011 Affimed N.V. 14.8% 15.4% 14.8% N/A N/A N/A 14.8% N/A N/A N/A N/A Ariad Pharmaceuticals Inc. -9.0% 7.0% -9.0% -4.3% -31.2% 4.2% -9.0% 0.7% -64.4% 56.6% 140.2% Bellicum Pharmaceuticals, Inc. -12.0% 39.5% -12.0% N/A N/A N/A -12.0% N/A N/A N/A N/A Calithera Biosciences, Inc. -62.1% 41.1% -62.1% N/A N/A N/A -62.1% N/A N/A N/A N/A GlobeImmune Inc. -49.0% 48.3% -49.0% N/A N/A N/A -49.0% N/A N/A N/A N/A Incyte Corporation 48.3% -1.7% 48.3% 46.4% 86.9% 45.6% 48.3% 44.4% 204.8% 10.7% -9.4% Kite Pharma, Inc. 6.8% 10.7% 6.8% N/A N/A N/A 6.8% N/A N/A N/A N/A Loxo Oncology, Inc. 142.1% 62.8% 142.1% N/A N/A N/A 142.1% N/A N/A N/A N/A Luye Pharma Group Ltd. -19.1% 17.3% -19.1% N/A N/A N/A -19.1% N/A N/A N/A N/A Merrimack Pharmaceuticals, Inc. -30.1% -7.2% -30.1% 21.7% 9.1% N/A -30.1% 112.0% -12.5% N/A N/A Nektar Therapeutics 8.7% 53.7% 8.7% 21.8% 31.5% 5.6% 8.7% 36.6% 53.2% 32.4% -56.5% SciClone Pharmaceuticals, Inc. 5.0% 32.6% 5.0% 35.1% 28.8% 17.1% 5.0% 73.8% 16.9% 0.5% 2.6% Seattle Genetics, Inc. 39.7% 16.4% 39.7% 6.1% 24.7% 24.6% 39.7% -19.5% 72.2% 38.6% 11.8% Sequenom Inc. -55.7% -6.3% -55.7% -16.3% -29.6% -27.2% -55.7% 58.1% -50.3% 5.8% -44.6% Sucampo Pharmaceuticals, Inc. 21.1% -13.0% 21.1% 35.6% 52.2% 35.1% 21.1% 51.9% 91.8% 10.6% 15.4% Tokai Pharmaceuticals, Inc. -40.8% -15.7% -40.8% N/A N/A N/A -40.8% N/A N/A N/A N/A Incorporated 5.9% 20.8% 5.9% 30.1% 44.3% 29.1% 5.9% 59.9% 77.3% 26.2% -5.2% Median of Industry Public Companies 5.0% 16.4% 5.0% 21.8% 28.8% 20.8% 5.0% 51.9% 53.2% 18.4% -1.3% (Multiple year periods are calculated as the average annual return.)

Median Quarterly Revenue Growth of All Oncology Pharmaceutical Companies Median Gross Profit, EBITDA, Net Income and Gross Cash Flow Margins

6.0% 80.0% 5.0% 60.0% 4.0% 40.0% 3.0% 20.0% 2.0% 0.0% 1.0% -20.0% 0.0% -40.0% -1.0%

Gross Profit EBITDA Net Income Gross Cash Flow

Median Public Company Multiples of the Oncology Pharmaceutical Industry

Date: 12/31/2013 3/31/20146/30/2014 9/30/2014 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 EV/Revenues Multiple 4.0x 5.7x 3.2x 2.8x 2.8x 6.1x 5.3x 4.8x 5.0x EV/EBITDA Multiple 15.6x 19.7x 13.8x 14.7x10.0x 18.2x 18.0x 17.5x 13.2x Price/Earnings Multiple 21.5x 34.7x 27.2x15.7x 20.5x 52.2x 29.4x 23.5x 23.0x EV/Gross Cash Flows Multiple 17.3x 17.9x 18.1x 27.5x 9.7x 42.0x 24.5x 20.4x 13.2x

This industry research is provided at no charge to Cogent Valuation's clients. Research or detailed information not covered in this report can be obtained for a fee. Contact Steven Kam at 415-392-0888 for additional information or questions in connection with this research report. Copyright © 2016 Cogent Valuation. All Rights Reserved. The disclosures and limitations of this research on page two are an integral part of this report. Page 1 of 2 Quarterly Industry Update As of December 31, 2015 Industry: Oncology Pharmaceutical

Industry Initial Public Offerings (dollars in millions, except share prices)

Offer Date Company Name Offer Price Shares Offered Amount Raised Total Assets Debt LTM Revenues LTM EBITDA LTM Net Income LTM Cash Flows 10/7/2015 CytomX Therapeutics, Inc. $12.00 6.7 $80.0 $134.1 $2.3 $7.6 ($17.5) ($20.4) ($16.6) 9/30/2015 Mirna Therapeutics, Inc. $7.00 6.3 $43.8 $42.2 $0.0 $0.0 ($17.8) ($19.8) ($17.8) 7/28/2015 NantKwest, Inc. $25.00 0.0 $207.2 $58.5 $0.0 $0.5 ($36.7) ($37.9) ($36.6) 5/6/2015 Adaptimmune Therapeutics plc $17.00 11.3 $191.3 $137.9 $0.0 $4.4 ($15.3) ($11.6) ($14.9) 4/14/2015 Aduro BioTech, Inc. $17.00 7.0 $119.0 $126.5 $0.0 $13.4 ($18.9) ($17.0) ($18.6) 2/18/2015 Check-Cap Ltd. $6.00 2.0 $12.0 $3.3 $0.0 $0.0 ($4.0) ($4.2) ($3.9) 1/29/2015 TRACON Pharmaceuticals, Inc. $10.00 3.6 $36.0 $41.3 $9.5 $2.6 ($6.1) ($6.5) ($6.1) Median of All IPOs nm nm $80.0 $58.5 $0.0 $2.6 ($17.5) ($17.0) ($16.6) nm: not meaningful, N/A: not applicable

Recent Merger and Acquisition Transactions for a Majority Stake (dollars in millions)

Transaction Date Target Acquirer Transaction Size % Bought LTM Revenues EV/Revenues Size of M&A Transactions 12/4/2015 DARA BioSciences, Inc. Midatech Pharma Plc $30.7 100% $2.4 8.8x 9 10/7/2015 AstraZeneca PLC, Caprelsa Genzyme Corporation $300.0 100% $48.0 6.3x 8 7/23/2015 Sigma-Tau Pharma Inc. $900.0 100% $100.0 9.0x 7 5/26/2015 Pharmacyclics, Inc. AbbVie Inc. $19,950.0 100% $816.1 23.4x 6 5 3/20/2015 EUSA Pharma, Inc. Essex Woodlands Health $34.0 100% $27.0 1.3x 4 2/28/2014 Paladin Labs Inc. plc $1,777.9 100% $263.0 5.8x 3 12/4/2013 Agila Specialties Private , Inc. $1,850.0 100% $255.0 7.3x Number of Transactions 2 10/24/2013 Optimer Pharmaceuticals Cubist Pharmaceuticals $773.8 100% $76.9 9.1x 1 0 9/2/2013 Open Stock Company LLC Garden Hills $215.6 52% $142.4 2.4x 7/16/2013 Cipla Medpro Cipla Limited $538.5 100% $259.6 2.0x 6/12/2012 EUSA Pharma, Inc. $700.0 100% $95.0 7.4x LTM Revenues Reported 1/23/2012 Ascent Pharmahealth Ltd Watson Pharmaceuticals $392.7 100% $157.1 2.5x 7 12/22/2011 Lundbeck Inc. Oak Pharmaceuticals Inc. $60.0 100% $34.8 1.7x 6 4/7/2011 Laboratorio Quimico Inc. $215.0 100% $80.0 2.7x 5 10/15/2010 Abraxis BioScience, Inc. Celgene Corporation $3,659.6 100% $447.5 7.8x 4 6/7/2010 OSI Pharmaceuticals Inc. Astellas US Holding, Inc. $3,946.4 100% $441.0 7.7x 3 1/29/2010 Enzon Pharmaceuticals Inc. Sigma-Tau Pharmaceuticals $330.0 100% $135.2 2.4x 2

3/18/2009 Indevus Pharmaceuticals Endo International plc $825.5 100% $87.8 8.0x Number of Transactions 1 12/15/2008 Amgen Inc. Biovitrum AB $150.3 100% $70.0 2.1x 0 5/8/2008 Jazz Pharmaceuticals EUSA Pharma, Inc. $22.6 100% $20.2 0.7x Median of the 20 M&A Transaction Targets $465.6 100% $97.5 6.0x

Definitions of Financial Terms Used in this Quarterly Industry Update: Enterprise Value (EV): Market Value of Equity + Market Value of Debt - Cash Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): Profitability metric sometimes also referred to as operating profit or operating earnings. Gross Cash Flows: Net Income + Depreciation and Amortization Expense Latest Twelve Months (LTM): Financial information is as of the latest twelve months through the date of this Quarterly Industry Update.

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The disclosures and limitations of this research on page two are an integral part of this report. Page 2 of 2